Numbers are numbers and the numbers look very good.
Revenue increased 76% to a record $15.0 million. The increase was due to a $3.3 million or 38% increase in subscription revenue generated by the company’s CreateApp B2B mCommerce platform and $3.2 million contributed by its new Push Interactive subsidiary acquired on January 8, 2020.
They are expanding at a phenomenal rate.
Acquired the assets and operations of Push Holdings to launch mobile apps in North America leveraging Weyland’s mCommerce and mobile fintech solutions, as well as offer Push’s eCommerce products and services globally.
Partnered with Indosat Ooredoo, Indonesia’s second largest telecom provider, to launch a nationwide marketing campaign for CreateApp in Indonesia.
Launched CreateApp in Taiwan to reach the more than 1.3 million small-and-medium sized businesses (SMBs) across the country and help them easily establish a mobile presence.
Partnered with Medias-Com’S SA, a Swiss company specializing in media and communication in order to launch its CreateApp mobile commerce platform-as-a-service in Italy.
Increased adoption of CreateApp mobile app solution for small and medium-sized businesses, which included existing customers subscribing to additional features and modules. The CreateApp user base, comprised of businesses across Southeast Asia, grew to more than 390,000 during the quarter.
Key acquisition was Push Interactive. It has allowed AtoZ and Create App to expand like gang busters. This was a well thought out and key acquisition.
“Key to our acquisition of Push is how it provides brands for which CreateApp can launch mobile Apps globally. Push’s eCommerce platform is also synergistic to our m-Commerce technologies deployed in Indonesia, including AtozGo, our hyper-local, ‘foot-powered’ food delivery service operating in Jakarta.
Keep in mind Weyland owns a large percentage of AtozGo Jakarta and it is doing very well. Here is a snippet about it.
“The valuations of app-based food delivery services are highly favorable. Whether it’s an Uber Eats or GrubHub, or even similar services in Southeast Asia like GrabFood or Go-Food, the average value per user is pegged at around $330. For AtozGo, this would imply a stand-alone valuation of around $33 million, and that is just as of today. If we hit our goal of 1 million users by year-end, the valuation would come in at 10 times that or nearly $330 million.
Weyland has recognized the economic inpact of Covid 19 and they are supporting those customers whom are struggleing. This to me is seen as an investment into the future and a way to tell customers they have there backs. Take a look.
“However, over the near term, with the shutdowns continuing in Southeast Asia due to COVID-19, we’ve begun to see the impact on small businesses in a region that represents virtually all of our current CreateApp customers. Like many subscriber-based businesses are doing these days, we have the flexibility give our distributors, through whom we primarily sell CreateApp, the flexibility to selectively extend CreateApp subscriptions from 30 to 90 days without charge.
“As we all know, once a customer is lost, it is much more difficult to bring them back. So, we believe this is not only good for customers but also for Weyland, as sustaining our customer base is key.
What some see as a price supressed stock, I have a different opinion, is we have the real "Diamond". Everything is starting to fall into place. When I first got into this I spoke to John McNiel. He said at the time a lot of folks were playing Weyl for a short squeeze and he emphasized to me at that point they were playing long ball. Weyland did not want to force a squeeze but expand services through Atoz expansion and key acquisitions such as Push which allowed them to tap into a North American market that was previously unavailable to them. I found John to be very genuine and straight forward as he encouraged me to look at the long term value Weyland was building. I can say he was correct and the growth the company is showing and the proof in the pudding. I feel Weyland is severly undervalued at this point. A company that is dying does not make acquisitions and expansion. Weyland is far from that. I must emphasize Atozgo of Jakarta has the potential to be valued at $330 million by the end of the year alone. That platform is owned by Welyand outside of the Jakarta region so imagine the potential they will have.
Atoz / Push Interactive / Create App just needed a little time to get started. Now they are in growth mode and this company is just getting started. This should prove to be a very exciting year ahead for Weyland. In my opinion Brent is following his vision and executing it on a very high level.
